Five steps to becoming a Very Smart Investor

Technology has connected everyone with all the things around them. Managing finances, ordering groceries, accessing entertainment, socialising, networking — all of it is connected and possible at the touch of a button. From smartphones to smart homes and smart TVs, there is a range of products in the “smart” category. Technological advances have made the world a smarter place. In the stock markets, too, making use of the advantages brought about by technology can make you a very smart investor.

So who is a smart investor? A smart investor is not someone who knows how to make loads of money overnight. Instead, it is somebody who can deploy available resources to make a consistent investment, have a diversified portfolio and build wealth over a period of time. Smart investors don’t invest where everyone is investing; instead, they educate themselves about the market and research well before putting their money anywhere.

Now, this is how one becomes a smart investor. But how do you become a very smart investor? Like every other smart thing being connected to technology, you can also leverage technology to become a very smart investor.

The first step is to download a stockbroking app on your smartphone. If you are a new investor, you can start the investment journey with a quick account opening on the app and leverage features like minimal brokerage fees. The benefit of using a mobile app for investment and trading is keeping track of the market on the go.

After you have opened the account, you can explore digital solutions like a rule-based investment engine to make your first investment. Rule-based investment engines recommend stocks based on a set of rules, devoid of any human bias. It helps minimise risk and maximise returns.

The third step towards becoming a very smart investor is using multiple third party platforms that would be integrated with apps of digital brokers for building diversified portfolios and investing in international markets. The modern investment products enable you to make a low-cost, long-term portfolio. It is one of the best ways to invest in equities.

Another benefit of using stockbroking apps is the constant alerts on the market. It can be challenging to keep track of the market with everyday chores, but alerts of significant developments given by the app can help you make informed decisions. If used judiciously, alerts can help you earn profits by keeping you updated.

Lastly, digital brokers also provide investment education platforms. These are more like a comprehensive guide to financial markets. Anybody can join these platforms to learn about everything from the workings of the market to business fundamentals and trading strategies.

Become a very smart investor by following these simple steps.


(The author is Chief Growth Officer, Angel One. Views expressed are personal.)